Over a month ago the government established a price ceiling for pork. Consequently, there is a shortage in the market due to this price control. Presently, the government wanted to increase the price ceiling for pork which may reduce the shortage in demand. 1. Demonstrate and explain in a graph the three changes in the price due to the price control of the government with no shift in demand and supply. The three price phases are before the price control, the first price control and the third price control. 2. Assign value in your graphs and compute the three consumer and sellers surplus. Is there a deadweight?
Over a month ago the government established a
1. Demonstrate and explain in a graph the three changes in the price due to the price control of the government with no shift in demand and supply. The three price phases are before the price control, the first price control and the third price control.
2. Assign value in your graphs and compute the three consumer and sellers surplus. Is there a deadweight?
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https://www.philstar.com/headlines/2021/02/26/2080490/da-open-higher-pork-price-ceiling
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